DigitalX Weekly Crypto Update: Market Trends and Analysis

Market Commentary

With Donald Trump’s presidential victory and Republicans’ likely control of the Senate, Bitcoin surpassed its all-time high on election night alongside a soaring digital asset market and crypto stocks such as Coinbase and MicroStrategy. The market is optimistic about a pro-crypto shift as Trump has previously pledged to make America “the crypto capital of the planet” and create a “strategic reserve” of Bitcoin. He also expressed intentions to remove SEC Chair Gary Gensler, who is believed to have an anti-crypto stance, from his position. As such, BlackRock’s IBIT spot Bitcoin ETF experienced heightened trading volumes of $1 billion in the first twenty minutes of trading the day after Donald Trump won the U.S. presidential election. 

Cartwright became the UK’s first pension fund to invest directly in Bitcoin. Last month, an unnamed fund within Cartwright made headlines by allocating 3% of its £50 million portfolio to Bitcoin—a considerably larger stake than typical investments by other pension funds in the crypto space. Glenn Cameron, Cartwright’s Head of Digital Assets, highlighted that the investment was made directly into Bitcoin rather than through a proxy such as an ETF. Additionally, Cartwright is launching a Bitcoin Employee Benefits scheme, enabling employers to contribute Bitcoin directly into digital wallets created for their employees.

In a recent filing, State of Michigan’s state pension fund discloses over $10 million worth of Ethereum ETF holdings, becoming the first U.S. pension fund to do so since their launch in July. Notably, the Michigan pension agency also holds about US$7 million worth of spot Bitcoin ETFs. 

Key players in the crypto industry have united to launch the Global Dollar Network, a collaborative initiative to drive worldwide stablecoin adoption. Featuring prominent firms such as Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood, the network’s mission is to foster innovative use cases and expand utility for its new stablecoin, USDG. In compliance with the Monetary Authority of Singapore, Paxos will issue USDG on the Ethereum blockchain, with DBS Bank securely holding the stablecoin’s reserves. The Global Dollar Network is actively inviting qualified custodians, exchanges, payment technology firms, and other financial sector entities to participate. Kraken Co-CEO Arjun Sethi envisions the initiative as a step toward a “more equitable model that will engage mainstream participants and accelerate new stablecoin use cases.”

CRYPTO TOP 20 7 DAY PRICE CHANGE

*All figures throughout are in USD unless otherwise specified

Market Updates

• Bitcoin hits new all–time high on Trump presidential victory
• ‘Greatest comeback story of all time’: crypto community reacts as Trump wins US election
• BlackRock’s spot Bitcoin ETF sees $1 billion of volume in just 20 minutes following Trump victory
• ETH-to-BTC market cap ratio declines to 24.52%, its lowest level since April 2021
• Kraken launches licensed crypto derivatives in Australia
• JPMorgan renames blockchain platform to Kinexys, to add on-chain settlement for USD, EUR
• Tether reports $2.5B profit in Q3, holds over $100B of U.S. Treasuries
• DeFi to have ‘wallet garden’ moment as internet of money matures: dYdX’s D’Haussy
• Metaplanet gains first index listing with inclusion on CoinShares’ BLOCK index
• Stripe’s $1.1B acquisition target, Bridge, buys Web3 wallet platform Triangle
• Temasek-backed blockchain VC firm to start new investment fund: Report
• Ethereum researchers relinquish EigenLayer roles over conflict of interest concerns
• BitGo taps former Silvergate president to oversee stablecoin business as market for USD-pegged tokens expands
• TON Foundation launches Society DAO to drive decentralised governance and ecosystem growth
• Mt. Gox sends 500 Bitcoin to two unmarked wallets: Arkham data
• SafePal launches Telegram crypto wallet with Visa card support
• Turkish investors prefer crypto over real estate and stocks – Survey
• Standard Chartered-backed Zodia Custody in talks to raise $50 million: Bloomberg
• Coinbase hit with $300M token listing allegations by Sun, Cronje
• Solana saw its highest monthly active addresses, surpassing 120 million in October
• OpenSea plans comeback with 2.0 overhaul
• Avalanche Foundation buys back $52 million worth of AVAX tokens from Do Kwon’s defunct ‘Luna Foundation Guard’
• Arkham Research enters crypto market with new exchange for perpetual trading

The Next Wave

• First UK pension fund invests in Bitcoin
• Florida CFO Jimmy Patronis ‘Would Not Be Shocked’ to see State’s $800M crypto portfolio grow under a Trump presidency: CNBC
• State of Michigan’s state pension fund discloses over $10 million worth of Ethereum ETF holdings
• Healthcare firm Semler Scientific buys 47 additional Bitcoin, taking total holdings to 1,058 BTC
• Ramaswamy’s Strive launches wealth management arm to bring Bitcoin to standard portfolios
• VanEck lists PYTH ETN in Europe
• 21Shares looks to secure SEC approval for XRP ETF amid growing interest in other crypto funds
• Huawei integrates digital yuan into HarmonyOS NEXT for up to 1B users
• Deutsche Telekom ventures into Bitcoin mining with renewable energy

Tinkering with Tokenisation

• Singapore plans further commercialisation of tokenised assets to ‘deepen liquidity’
• Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos and Robinhood partner to introduce Global Dollar Network
• Swift, Chainlink wrap tokenisation pilot
• UBS launches tokenised money market investment fund on Ethereum
• Citigroup, Fidelity International unveil proposal for on-chain fund with real-time FX swaps
• Paxos launches new USD stablecoin with Singapore’s DBS Bank
• Securitize crosses $1 billion in tokenised onchain assets as it launches a new fund administrator service
• Robert Leshner’s Superstate introduces real-time ‘continuous pricing’ for USTB tokenised Treasurys fund
• Franklin Templeton takes its tokenised treasury fund to Base, becomes first asset manager on its Layer 2
• Tether to launch dirham-pegged stablecoin on TON
• Digital asset exchange Archax acquires Spanish broker
• SBI Digital Markets to pilot ABS as part of Project Guardian
• City of Lugano issues third digital bond via SDX
• Euroclear, HSBC join SIngapore’s GL1 public permissioned blockchain initiative
• BNB Chain reveals no-code real-world asset tokenisation service

Macro and Regulatory Environment

• Donald Trump elected US president in stunning political resurrection
• Trump’s triumph is also crypto’s: Gensler, regulatory clouds likely to vanish
• FOMC gathers as country and markets digest election results
• Elizabeth Warren defeats crypto advocate John Deaton to hold Massachusetts senate seat
• Kemi Badenoch is new leader of U.K. Conservative Party
• Blockchain Association says SEC has cost crypto industry $400 million since Gensler became chair
• SEC goes after another crypto firm, slaps Immutable with Wells Notice
• Bitcoin mining bans can backfire on climate conscious governments, a new research finds
• Judge pushes Tornado Cash co-founder trial to April 2025
• Taiwan’s FSC to heighten scrutiny of crypto listings on exchanges in upcoming January rules, official says
• Pakistan moves to regulate cryptocurrency, CBDCs as legal tender
• Binance lawyers seek to dismiss SEC’s amended securities complaint in new filing

About DigitalX

DigitalX Ltd (ASX:DCC) is a leading ASX-Listed Bitcoin and digital asset funds management business. The Company has a 9 year track record mining Bitcoin, blockchain and smart contract development. DigitalX Asset Management is the investment manager of digital asset investment products that provide qualified investors with highly secure and streamlined access to digital asset exposure. To learn more contact the team at [email protected] or visit our website https://digitalx.fund/.

Disclaimer:

The information in this document is prepared by DigitalX Asset Management Pty Ltd (ACN 629 653 121) (DigitalX).

DigitalX is a corporate authorised representative (CAR) (CAR No. 1270748) of Boutique Capital Pty Ltd (AFSL 508011) and True Oak Investments Ltd (AFSL 238184). Boutique Capital is the Trustee of the DigitalX Fund and the DigitalX Bitcoin Fund. True Oak Investments is the Trustee of the DigitalX Real World Asset Tokenisation Fund (RWAx). All three funds are open to wholesale investors only.

DigitalX is also a corporate authorised representative (CAR) of K2 Asset Management Ltd (ABN 95 085 445 094 AFSL 244 393) (K2), a wholly owned subsidiary of K2 Asset Management Holdings Ltd (ABN 59 124 636 782). K2 is the Responsible Entity and Issuer of the DigitalX Bitcoin ETF (ASX: BTXX) (ARSN 650 945 216) which is open to retail investors. Offers to invest in the DigitalX Bitcoin ETF (BTXX) will only be made in the product disclosure statement (PDS) and this material is not intended to substitute the PDS which outlines the risks involved and other relevant information. You should also consider the Target Market Determination (TMD) issued when ascertaining if the product is appropriate for your needs. A PDS & TMD for BTXX can be obtained at https://www.digitalx.com/funds/bitcoin-etf/. You should consider the PDS & TMD before making a decision to acquire an interest in BTXX.

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